Thailand's Video Codec Market to Hit $7.9B by 2031 on 5G, OTT Growth
Thailand's next-generation video codec market is projected to reach $7.9 billion by 2031, driven by increasing mobile video consumption, 5G expansion, and OTT adoption. HEVC and AV1 are identified as key codecs gaining popularity for their efficiency in delivering high-quality video at lower bitrates, influencing codec choices for streaming professionals. Challenges include infrastructure compatibility, high implementation costs, and licensing issues, but government initiatives and growing demand for high-definition content continue to fuel market growth.
Key Takeaways
- The market is forecast to grow at a CAGR of 22.1% from 2025 to 2031, reaching $7.9 billion.
- HEVC is projected to remain the largest codec segment due to bitrate efficiency, despite processing complexity.
- Mobile phones are expected to drive the highest growth within the application category.
- Challenges include infrastructure compatibility, high implementation costs, and licensing issues.
- Government initiatives for digital infrastructure and smart cities are significant market drivers.
Why It Matters
The rapid expansion of Thailand's video codec market signals increased demand for efficient content delivery infrastructure. Streaming services and other video-centric businesses operating in the region must prioritize codec adoption strategies to manage bandwidth costs and enhance user experience. The coming years will reveal which codecs gain dominant market share as 5G networks and local OTT platforms mature across Southeast Asia.
Additional Context
Thailand’s digital economy is undergoing a structural shift toward premium mobile video, with the 5G subscriber base and OTT revenues reaching record highs. Per True Corporation in August 2025, the telco’s 5G user base reached 14.7 million, a 25% year-over-year increase, supported by the rollout of Dynamic Spectrum Sharing (DSS) technology to maximize bandwidth in high-density areas. This network modernization is essential as video now dominates Thai data consumption; per a 2025 PwC report, Thailand’s OTT video market is expected to grow 21% this year, reaching THB 33.8 billion. Competitive dynamics in the region are currently led by a mix of global and local giants. According to Media Partners Asia (MPA) in late 2025, Netflix and local platform TrueID controlled a combined 48% share of the 1.3 billion hours streamed in Thailand during 2024. While Netflix has been a primary driver of AV1 adoption—reporting that the codec accounts for 30% of its global viewing as of early 2026—local platforms face higher hurdles. External reporting from CSI Magazine in September 2025 highlights that while AV1 offers 30% compression gains over older standards, hardware support remains a challenge for the 75% of users on mid-to-low-tier handsets. To combat this, the Thai government is actively pushing its Smart City initiative, aiming to develop 45 smart cities by late 2024 to stimulate $1.7 billion in digital infrastructure investment. These public-sector moves in telehealth and urban surveillance are expected to further cement the necessity for high-efficiency codecs to manage massive real-time data flows without overwhelming existing network capacity.
Read full article at lucintel.com
Get this in your inbox → Subscribe
Enjoy our coverage?
Add StreamingMeme as a preferred source on Google to see more of our streaming news at the top of your Search results.
Add as preferred source